SAN JOSE, Calif. — June 3, 2014 — After two years of decline, fab equipment spending (new,
used) for Front End facilities in 2014 is expected to increase 24 percent in
2014 (US$35.7 billion) and about 11 percent (US$39.5 billion). In terms of equipment spending, 2015 may reach
or even surpass historic record year 2011 (about US$39.8 billion). For the May
2014 SEMI World Fab Forecast publication, SEMI tracked more than 200 major
projects involving equipment spending for new equipment or upgrades, as well as
projects to build new facilities or refurbish existing facilities. In the last three months, 265 updates were
made to the database. See Figure 1.

In 2014, the three largest regions for fab equipment
spending will be Taiwan with over US$10.3 billion, the Americas with over
US$6.8 billion, and Korea with over US$6.3 billion. In 2015, these same regions will lead in
spending: Taiwan will spend over US$11 billion, Korea over US$8 billion, and
the Americas almost US$7 billion. Although in sixth in regional equipment
spending this year, the Europe/Mideast region will show the strongest rate of
growth, about 79 percent compared to the previous year. The same region will continue to grow fast in
2015, with an increase of about 20 percent.

Worldwide installed capacity is very low for both 2014
and 2015 and the SEMI data does not suggest that this will change over the next
four years. Because of the increased complexity of leading-edge nodes, such as
more process steps and multiple patterning, fabs experience a decline in capacity
as the same fab space produces less.
Worldwide, installed capacity grew by less than 2 percent in 2013 and is
expected to grow just 2.5 percent in 2014 and 3 percent in 2015.

SEMI’s detailed data predict that Foundry capacity continues
to grow at 8-10 percent yearly (a steady pace since 2012) and Flash is up 3 to
4 percent for 2014. Although DRAM equipment spending is expected to grow by 40
percent in 2014 as many fabs upgrade to a leading-edge process, installed
capacity for DRAM is expected to stay flat or even drop 2 percent. SEMI’s reports also cover capacity changes
for other product segments: MPU, Logic,
Analog/Mixed signal, Power, Discretes, MEMS, and LED and Opto.

The SEMI World Fab Forecast uses a bottom-up approach
methodology, providing high-level summaries and graphs, and in-depth analyses
of capital expenditures, capacities, technology and products by fab.
Additionally, the database provides forecasts for the next 18 months by
quarter. These tools are invaluable for understanding how the semiconductor
manufacturing will look in 2014 and 2015, and learning more about capex for
construction projects, fab equipping, technology levels, and products.

The SEMI Worldwide Semiconductor Equipment Market
Subscription (WWSEMS) data tracks only new equipment for fabs and test and assembly
and packaging houses. The SEMI World Fab
Forecast and its related Fab Database reports track any equipment needed to
ramp fabs, upgrade technology nodes, and expand or change wafer size, including
new equipment, used equipment, or in-house equipment. Also check out the
Opto/LED Fab Forecast. Learn more about the SEMI fab databases at: www.semi.org/MarketInfo/FabDatabase
and www.youtube.com/user/SEMImktstats

About SEMI

SEMI is the global industry association
serving the nano- and microelectronics manufacturing supply chains. Our
1,900 member companies are the engine of the future, enabling smarter, faster
and more economical products that improve our lives. Since 1970, SEMI has been
committed to helping members grow more profitably, create new markets and meet
common industry challenges. SEMI maintains offices in Bangalore, Beijing,
Berlin, Brussels, Grenoble, Hsinchu, Moscow, San Jose, Seoul, Shanghai,
Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.